On January 1, 2019 Fanning Company issued $3,000,000 of ten year 8% bonds to finance its operations. Interest is payable on June 1, and December 31. The bonds were issued at an effective rate of 10%, resulting in Fanning Company receiving cash of $2,626,135. Fanning uses the straight-line method to amortize the bond, and the bonds are 10-year bonds.

Journalize the entries to record the following:

a) Sale of the bonds.

b) The June 1, interest payment.

c) The December 31, Interest Payment.

d) The bond was called back @ 101 on January 5, 2020.